Report on NAFTA Committee on Trade in Worn Clothing
In Section 9 of Annex 300-B, the Parties established the Committee on Trade in Worn Clothing, comprising representatives of each Party. This Committee shall:
include or consult with a broadly representative group drawn from the manufacturing and retailing sectors in each Party; and
act in a transparent manner and, if no member of the Committee formally objects, make recommendations to the Commission.
The Committee shall assess the potential benefits and risks that may result from the elimination of existing restrictions on trade between the Parties in worn clothing and other worn articles, as defined in heading 63.09 of the HS, including the effects on business and employment opportunities, and on the market for textile and apparel goods in each Party.
The U.S. and Mexican representatives to this Committee met informally in April 1994. All three Parties attended a formal meeting held in April, 1996 in Mexico City.
In that meeting, the United States provided copies of its import and export data for worn clothing. The United States also provided a copy of a study entitled, "Used clothes as development aid", prepared by the Department of Economics at Goteborg University, Sweden, for the Swedish International Development Cooperation Agency. Meanwhile, Mexico provided data on the licenses issued to philanthropic organizations.
All Parties are to provide updated import and export statistics. The United States will continue its research of academic or economic studies in this field.
Work Plan for the Future:
The future agenda fro this Committee may include; complete exchange of data and economic studies; attempt to determine the size of the market for worn clothing in North America; and make efforts to assess the potential risk of worn clothing imports on the manufacturing sector.
March 13, 1997
Source: International Trade